Board Approves $50 Million Increase to Share Repurchase Program While Management Continues Deleveraging Strategy
NEW YORK--(BUSINESS WIRE)--August 06, 2026--
CION Investment Corporation $(CION)$ ("CION" or the "Company") today reported financial results for the second quarter ended June 30, 2026 and filed its Form 10-Q with the U.S. Securities and Exchange Commission (the "SEC").
CION also announced that, on August 3, 2026, its co-chief executive officers declared base distributions of $0.10 per share for each of October, November and December 2026, which will be payable to shareholders on October 30, November 27, and December 28, 2026, respectively, to shareholders of record as of October 16, November 13, and December 11, 2026, respectively.
SECOND QUARTER AND OTHER HIGHLIGHTS
-- Net investment income and earnings per share for the quarter ended June
30, 2026 were $0.29 per share and $0.62 per share, respectively;
-- Net asset value per share was $13.57 as of June 30, 2026 compared to
$13.11 as of March 31, 2026, an increase of $0.46 per share, or 3.5%. The
increase was primarily due to mark-to-market price increases to certain
equity investments in the Company's portfolio during the quarter ended
June 30, 2026;
-- As of June 30, 2026, the Company had $1.17 billion of total principal
amount of debt outstanding, of which 25% was comprised of senior secured
bank debt and 75% was comprised of unsecured debt. The Company's net
debt-to-equity ratio was 1.52x as of June 30, 2026 compared to 1.62x as
of March 31, 2026;
-- As of June 30, 2026, the Company had total investments at fair value of
$1.65 billion in 82 portfolio companies across 23 industries. The
investment portfolio was comprised of 79.2% senior secured first lien
investments;1
-- During the quarter, the Company funded new investment commitments of
$54 million, funded previously unfunded commitments of $13 million, and
had sales and repayments totaling $157 million, resulting in a net
decrease to the Company's funded portfolio of $90 million;
-- As of June 30, 2026, investments on non-accrual status amounted to
1.44% and 4.41% of the total investment portfolio at fair value and
amortized cost, respectively, down from 1.53% and 5.35%, respectively, as
of March 31, 2026;
-- During the quarter, the Company repurchased 1,099,109 shares of its
common stock under its 10b5-1 trading plan at an average price of $7.28
per share for a total repurchase amount of $8.0 million. Through June 30,
2026, the Company repurchased a total of 7,755,736 shares of its common
stock under its 10b5-1 trading plan at an average price of $9.44 per
share for a total repurchase amount of $73.2 million;
-- On July 9 and July 24, 2026, the Company repaid a total of
approximately $125 million in aggregate principal amount of borrowings
under its JPM Credit Facility;
-- On July 15, 2026, the Company entered into note purchase agreements
with certain institutional investors in connection with the Company's
issuance of up to $10 million in aggregate principal amount of its 7.50%
senior unsecured notes due 2029 and up to $50 million in aggregate
principal amount of its 8.00% senior unsecured notes due 2031. The
initial closing on July 15, 2026 consisted of an aggregate principal
amount of $2 million in 7.50% 2029 Notes and an aggregate principal
amount of $28 million in 8.00% 2031 Notes; and
-- On July 30, 2026, the Company increased the authorized amount of shares
that may be repurchased by the Company under its share repurchase policy
by $50 million, from up to $80 million to up to $130 million. The share
repurchase policy may be implemented at the Company's sole discretion,
subject to market conditions, applicable law and other factors.
DISTRIBUTIONS
-- For the quarter ended June 30, 2026, the Company paid monthly base
distributions totaling $14.8 million, or $0.30 per share.
Mark Gatto, co-Chief Executive Officer of CION, commented:
"This was a good quarter based on our key metrics -- net asset value per share was up, net investment income was up, and non-accruals were down, with no new names placed on non-accrual and no new internal risk rating downgrades. Reflecting that confidence, our Board has authorized a $50 million increase to our existing share repurchase program, bringing the total to $130 million. We continue to believe our stock is significantly undervalued relative to our net asset value, and we are prepared to continue acting on that conviction."
SELECTED FINANCIAL HIGHLIGHTS
As of
---------------------------------
(in thousands, except per share data
and ratios) June 30, 2026 March 31, 2026
-------------------------------------- --------------- ----------------
Investment portfolio, at fair value(1) $ 1,645,159 $ 1,702,420
Total debt outstanding(2) $ 1,174,844 $ 1,174,844
Net assets $ 667,776 $ 659,636
Net asset value per share $ 13.57 $ 13.11
Debt-to-equity 1.76x 1.78x
Net debt-to-equity 1.52x 1.62x
Three Months Ended
-----------------------------------
(in thousands, except share and
per share data) June 30, 2026 March 31, 2026
---------------------------------- --------------- ------------------
Total investment income $ 49,793 $ 49,537
Total operating expenses and income
tax expense $ 35,623 $ 36,673
Net investment income after taxes $ 14,170 $ 12,864
Net realized (losses) gains $ (17,966) $ 237
Net unrealized gains (losses) $ 34,776 $ (36,132)
Net increase (decrease) in net
assets resulting from operations $ 30,980 $ (23,031)
Net investment income per share $ 0.29 $ 0.25
Net realized and unrealized gains
(losses) per share $ 0.33 $ (0.70)
Earnings per share $ 0.62 $ (0.45)
Weighted average shares outstanding 49,660,843 50,803,697
Distributions declared per share $ 0.30 $ 0.30
Total investment income for the three months ended June 30, 2026 and March 31, 2026 was $49.8 million and $49.5 million, respectively. The slight increase in total investment income was primarily driven by an increase in the amortization of purchase discounts from opportunistic investment purchases made during the second quarter. This increase was partially offset by lower interest income earned on our investments due to a reduction in the size of our portfolio during the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026.
Operating expenses for the three months ended June 30, 2026 and March 31, 2026 were $35.6 million and $36.7 million, respectively. The decrease in operating expenses was primarily attributable to lower interest expense, which resulted from a decrease in the Company's average debt outstanding during the second quarter. The decrease was further driven by lower general and administrative expenses during the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026.
PORTFOLIO AND INVESTMENT ACTIVITY(1)
A summary of the Company's investment activity for the three months ended June 30, 2026 is as follows:
New Investment
Commitments Sales and Repayments
-------------------- --------------------------
Investment Type
(in thousands) $ % $ %
----------------- ----------- ------- ---------------- --------
Senior secured
first lien debt $ 55,271 97% $ (151,965) 97%
Collateralized
securities and
structured
products -
equity -- -- (4,900) 3%
Equity 1,510 3% -- --
------- --- ----------- ----
Total $ 56,781 100% $ (156,865) 100%
------- --- ----------- ----
During the three months ended June 30, 2026, new investment commitments were made across 1 new and 10 existing portfolio companies. During the same period, the Company received full repayment of investments in 5 portfolio companies and sold all investments in 3 portfolio companies. As a result, the number of portfolio companies decreased to 82 as of June 30, 2026 from 89 as of March 31, 2026.
PORTFOLIO SUMMARY(1)
As of June 30, 2026, the Company's investments consisted of the following:
Investments at Fair Value
-------------------------------
Investment Type (in thousands) $ %
-------------------------------- ------------------ -----------
Senior secured first lien debt $ 1,303,616 79.2%
Senior secured second lien debt -- --
Unsecured debt 7,359 0.5%
Equity 334,184 20.3%
-------------- -------
Total $ 1,645,159 100.0%
-------------- -------
The following table presents certain selected information regarding the Company's investments:
As of
-------------------------------------
June 30, 2026 March 31, 2026
------------- --------------
Number of portfolio companies 82 89
Percentage of performing loans
bearing a floating rate(3) 87.0% 88.6%
Percentage of performing loans
bearing a fixed rate(3) 13.0% 11.4%
Yield on debt and other income
producing investments at amortized
cost(4) 10.57% 10.43%
Yield on performing loans at
amortized cost(4) 11.23% 11.24%
Yield on total investments at
amortized cost 8.90% 8.92%
Weighted average leverage (net
debt/EBITDA)(5) 5.07x 4.62x
Weighted average interest
coverage(5) 1.87x 2.08x
Median EBITDA(6) $33.7 million $34.6 million
As of June 30, 2026, investments on non-accrual status represented 1.44% and 4.41% of the total investment portfolio at fair value and amortized cost, respectively. As of March 31, 2026, investments on non-accrual status represented 1.53% and 5.35% of the total investment portfolio at fair value and amortized cost, respectively.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2026, the Company had $1.17 billion of total principal amount of debt outstanding, comprised of $300 million of outstanding borrowings under its senior secured credit facilities and $875 million of unsecured notes and term loans. The combined weighted average interest rate on debt outstanding was 7.5% for the quarter ended June 30, 2026. As of June 30, 2026, the Company had $163 million in cash and short-term investments and $25 million available under its financing arrangements.(2)
EARNINGS CONFERENCE CALL
CION will host an earnings conference call on Thursday, August 6, 2026 at 11:00 am Eastern Time to discuss its financial results for the second quarter ended June 30, 2026. Please visit the Investor Resources - Earnings Presentation section of the Company's website at www.cionbdc.com for a slide presentation that complements the earnings conference call.
All interested parties are invited to participate via telephone or listen via the live webcast, which can be accessed by clicking the following link: CION Investment Corporation Second Quarter Conference Call. Domestic callers can access the conference call by dialing (877) 484-6065. International callers can access the conference call by dialing +1 (201) 689-8846. All callers are asked to dial in approximately 10 minutes prior to the call. An archived replay will be available on a webcast link located in the Investor Resources - Earnings Call section of CION's website.
ENDNOTES
(1) The discussion of the investment portfolio excludes short-term
investments.
(2) Total debt outstanding excludes netting of debt issuance costs of $14.9
million and $16.7 million as of June 30, 2026 and March 31, 2026,
respectively.
(3) The fixed versus floating rate composition has been calculated as a
percentage of performing debt investments measured on a fair value
basis, including income producing preferred stock investments and
excludes investments, if any, on non-accrual status.
(4) Computed based on the (a) annual actual interest rate or yield earned
plus amortization of fees and discounts on the performing debt and
other income producing investments as of the reporting date, divided by
(b) the total performing debt and other income producing investments
(excluding investments on non-accrual status) at amortized cost. This
calculation excludes exit fees that are receivable upon repayment of
the investment.
(5) For a particular portfolio company, the Company calculates the level of
contractual indebtedness net of cash ("net debt") owed by the portfolio
company and compares that amount to measures of cash flow available to
service the net debt. To calculate net debt, the Company includes debt
that is both senior and pari passu to the tranche of debt owned by it
but excludes debt that is legally and contractually subordinated in
ranking to the debt owned by the Company. The Company believes this
calculation method assists in describing the risk of its portfolio
investments, as it takes into consideration contractual rights of
repayment of the tranche of debt owned by the Company relative to other
senior and junior creditors of a portfolio company. The Company
typically calculates cash flow available for debt service at a
portfolio company by taking EBITDA for the trailing twelve-month
period. Weighted average net debt to EBITDA is weighted based on the
fair value of the Company's performing debt investments and excluding
investments where net debt to EBITDA may not be the appropriate measure
of credit risk, such as cash collateralized loans and investments that
are underwritten and covenanted based on recurring revenue.
For a particular portfolio company, the Company also calculates the
level of contractual interest expense owed by the portfolio company and
compares that amount to EBITDA ("interest coverage ratio"). The Company
believes this calculation method assists in describing the risk of its
portfolio investments, as it takes into consideration contractual
interest obligations of the portfolio company. Weighted average
interest coverage is weighted based on the fair value of the Company's
performing debt and equity investments, and excludes investments where
interest coverage may not be the appropriate measure of credit risk,
such as cash collateralized loans and investments that are underwritten
and covenanted based on recurring revenue.
Portfolio company statistics, including EBITDA, are derived from the
financial statements most recently provided to the Company for each
portfolio company as of the reported end date. Statistics of the
portfolio companies have not been independently verified by the Company
and may reflect a normalized or adjusted amount.
(6) Median EBITDA is calculated based on the portfolio company's EBITDA as
of the Company's initial investment.
CĪON Investment Corporation
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
June 30, 2026 December 31, 2025
--------------- ---------------------
(unaudited)
Assets
Investments, at fair value:
Non-controlled,
non-affiliated investments
(amortized cost of
$1,182,506 and $1,238,358,
respectively) $ 1,092,285 $ 1,158,985
Non-controlled, affiliated
investments (amortized cost
of $387,844 and $360,895,
respectively) 402,986 364,335
Controlled investments
(amortized cost of $360,206
and $342,843, respectively) 304,822 289,670
---------- --------------
Total investments, at fair
value (amortized cost of
$1,930,556 and
$1,942,096,
respectively) 1,800,093 1,812,990
Cash 7,664 8,159
Interest and fees receivable on
investments 34,571 27,979
Receivable due on investments
sold and repaid 1,590 3,699
Prepaid expenses and other
assets 2,770 1,973
---------- --------------
Total assets $ 1,846,688 $ 1,854,800
========== ==============
Liabilities and Shareholders' Equity
Liabilities
Financing arrangements (net of
unamortized debt issuance costs
of $14,903 and $14,263,
respectively) $ 1,159,941 $ 1,125,580
Payable for investments
purchased 3,076 2,529
Accounts payable and accrued
expenses 727 785
Interest payable 5,111 5,764
Accrued management fees 6,040 6,423
Accrued subordinated incentive
fee on income 3,006 3,882
Accrued administrative services
expense 1,011 2,182
Share repurchases payable -- 27
---------- --------------
Total liabilities 1,178,912 1,147,172
---------- --------------
Shareholders' Equity
Common stock, $0.001 par value;
500,000,000 shares authorized;
49,202,704 and
51,420,629 shares issued, and
49,202,704 and 51,417,866
shares outstanding,
respectively 49 51
Capital in excess of par value 986,777 1,004,496
Accumulated distributable losses (319,050) (296,919)
---------- --------------
Total shareholders' equity 667,776 707,628
---------- --------------
Total liabilities and
shareholders' equity $ 1,846,688 $ 1,854,800
========== ==============
Net asset value per share of
common stock at end of period $ 13.57 $ 13.76
-------------------------------- ========== ==============
CĪON Investment Corporation
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
Three Months Ended June Six Months Ended Year Ended
30, June 30, December 31,
-------------------------- --------------------------
2026 2025 2026 2025 2025
---------- ---------- ---------- ---------- ----------
(unaudited) (unaudited) (unaudited) (unaudited)
Investment income
Non-controlled,
non-affiliated
investments
Interest income $ 22,460 $ 32,478 $ 46,146 $ 66,598 $ 123,768
Paid-in-kind
interest income 7,868 6,289 13,356 14,648 29,782
Fee income 2,327 739 5,201 4,522 9,447
Dividend income 899 1,212 1,352 1,718 2,660
Non-controlled,
affiliated
investments
Interest income 2,605 2,305 4,665 4,280 8,550
Paid-in-kind
interest income 3,747 3,342 8,733 6,490 13,627
Fee income 583 700 583 700 975
Dividend income 2,602 439 5,947 630 5,645
Controlled
investments
Interest income 6,042 4,467 12,420 8,259 30,896
Paid-in-kind
interest income 660 -- 927 -- 5,821
Fee income -- 273 -- 473 9,650
---------- ---------- ---------- ---------- ----------
Total investment
income 49,793 52,244 99,330 108,318 240,821
---------- ---------- ---------- ---------- ----------
Operating expenses
Management fees 6,040 6,497 12,145 13,122 26,076
Administrative
services expense 1,194 1,196 2,570 2,475 5,180
Subordinated
incentive fee on
income 3,006 3,589 5,734 7,673 19,736
General and
administrative 1,543 1,393 3,505 3,229 6,334
Interest expense 23,836 22,637 48,249 45,635 90,540
---------- ---------- ---------- ---------- ----------
Total operating
expenses 35,619 35,312 72,203 72,134 147,866
---------- ---------- ---------- ---------- ----------
Net investment
income before
taxes 14,174 16,932 27,127 36,184 92,955
---------- ---------- ---------- ---------- ----------
Income tax expense
(benefit),
including excise
tax 4 10 93 10 (85)
---------- ---------- ---------- ---------- ----------
Net investment
income after
taxes 14,170 16,922 27,034 36,174 93,040
---------- ---------- ---------- ---------- ----------
Realized and
unrealized gains
(losses)
Net realized
(losses) gains on:
Non-controlled,
non-affiliated
investments (17,966) (32,376) (17,888) (30,082) (39,569)
Non-controlled,
affiliated
investments -- -- 159 -- --
---------- ---------- ---------- ---------- ----------
Net realized losses (17,966) (32,376) (17,729) (30,082) (39,569)
Net change in unrealized
appreciation (depreciation) on:
Non-controlled,
non-affiliated
investments 9,652 20,832 (15,859) (9,830) (42,242)
Non-controlled,
affiliated
investments 11,970 10,560 16,710 2,131 10,757
Controlled
investments 13,154 11,378 (2,207) (13,782) (42,617)
---------- ---------- ---------- ---------- ----------
Net change in
unrealized
appreciation
(depreciation) 34,776 42,770 (1,356) (21,481) (74,102)
Net realized and
unrealized gains
(losses) 16,810 10,394 (19,085) (51,563) (113,671)
---------- ---------- ---------- ---------- ----------
Net increase
(decrease) in net
assets resulting
from operations $ 30,980 $ 27,316 $ 7,949 $ (15,389) $ (20,631)
========== ========== ========== ========== ==========
Per share
information--basic
and diluted
Net increase
(decrease) in net
assets per share
resulting from
operations $ 0.62 $ 0.52 $ 0.16 $ (0.29) $ (0.39)
========== ========== ========== ========== ==========
Net investment
income per share $ 0.29 $ 0.32 $ 0.54 $ 0.68 $ 1.78
========== ========== ========== ========== ==========
Weighted average
shares of common
stock outstanding 49,660,843 52,628,784 50,229,113 52,848,420 52,341,612
========== ========== ========== ========== ==========
ABOUT CION INVESTMENT CORPORATION
CION Investment Corporation is a leading publicly listed business development company that had approximately $1.8 billion in total assets as of June 30, 2026. CION seeks to generate current income and, to a lesser extent, capital appreciation for investors by focusing primarily on senior secured loans to U.S. middle-market companies. CION is advised by CION Investment Management, LLC, a registered investment adviser and an affiliate of CION. For more information, please visit www.cionbdc.com.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as "may," "will," "should, " "expect," "anticipate," "project," "target," "estimate," "intend," "continue," or "believe" or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss CION's plans, strategies, prospects and expectations concerning its business, operating results, financial condition and other similar matters. These statements represent CION's belief regarding future events that, by their nature, are uncertain and outside of CION's control. There are likely to be events in the future, however, that CION is not able to predict accurately or control. Any forward-looking statement made by CION in this press release speaks only as of the date on which it is made. Factors or events that could cause CION's actual results to differ, possibly materially from its expectations, include, but are not limited to, the risks, uncertainties and other factors CION identifies in the sections entitled "Risk Factors" and "Forward-Looking Statements" in filings CION makes with the SEC, and it is not possible for CION to predict or identify all of them. CION undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
OTHER INFORMATION
The information in this press release is summary information only and should be read in conjunction with CION's Quarterly Report on Form 10-Q, which CION filed with the SEC on August 6, 2026, as well as CION's other reports filed with the SEC. A copy of CION's Quarterly Report on Form 10-Q and CION's other reports filed with the SEC can be found on CION's website at www.cionbdc.com and the SEC's website at www.sec.gov.
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